Variation in Directors’ terms of employment

For immediate release
                                                                21 December 2009

                               Serabi Mining plc
                          (“Serabi” or “the Company”)
                  Variation in Directors’ terms of employment
           Cancellation of existing options and award of new options.

The  Board  of  Serabi  announces  that  the  Directors’  employment  terms  and
conditions have been amended today with effect from 1 November 2009.

The  Directors have, since the end of  2008, been paid reduced levels of salary.
The  Directors  have  today  agreed  that  their salaries and benefits should be
reduced  to reflect the current nature and  strategy of the Company. In the case
of  the  non-executive  directors,  this  also  reflects a reduction in the time
commitments they will be obliged to give to the affairs of the Company.  Each of
the Directors has also agreed to reduce their contractual notice period.

The  Company estimates that  the effect of  these changes will  be to realise an
annual saving of over £200,000 by comparison to the previous arrangements.

The  Company  and  the  Directors  have  also  agreed to cancel all the existing
6,149,582 options  over ordinary shares that had  been previously awarded to the
Directors.

The  Company  has  agreed  to  award  in  aggregate  13,000,000 new options over
ordinary  shares to  the Directors  (representing 3.97 per  cent. of the current
issued share capital) exercisable at 1.5 pence per ordinary share, as follows:


  Director         Number of new options over Ordinary Shares

  Mike Hodgson     5,000,000

  Clive Line       5,000,000

  Graham Roberts   2,000,000

  Bill Clough      1,000,000


The  options will vest in three equal tranches, with one-third vesting and being
exercisable  immediately on award, one-third vesting on the first anniversary of
the award and the remainder vesting on the second anniversary of the award.  The
options  will  lapse  10 years  after  the  date  of  the award.  Other standard
provisions  consistent with the terms of  the cancelled options apply in respect
of  any  corporate  restructuring,  re-organisation  or  other  variation in the
ordinary shares of the Company.

The  Board is also approaching other options  holders who remain employees of or
consultants  to the  Company, with  a view  to cancelling  existing options over
700,000 ordinary  shares held by these individuals.  The Company has set aside a
further  6,300,000 options at an exercise price  of 1.5 pence per ordinary share
to be awarded subsequently as necessary to employees and consultants.


Enquiries:

Serabi Mining plc

 Clive Line                                               Tel: [phone]

 Finance Director                                         Mobile: [phone]



 Email:[e-mail]
 <mailto:[e-mail]>

 Website:                            www.serabimining.com
 <

http://www.serabimining.com/>



 Beaumont Cornish Limited
 Nominated Adviser and Broker

 Roland Cornish                                           Tel: [phone]

 Michael Cornish                                          Tel: [phone]



 Farm Street Communications

 Simon Robinson                                           07593 340107



ENDS


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